One week left in 2016, this year's year-end although some early, but after all, there are still more than a month to the small year! For the cotton textile weaving industry, this period of time is truly a bit tormented! Part of the cotton textile weaving enterprises show a helpless and heavy pressure on the shoulders of the mood, especially near the end of the year, the end of the year effect shows, enterprises are at a loss, do not know where to go. Do you really want to take an early holiday and go home for the New Year? Let's look at the specifics!
Raw material prices are unstable, cotton prices turbulent
Recently, Zheng cotton apparently a little less "harmonious", the disk fluctuations, then caused a series of fluctuations in the spot market.
December 22, according to a 400-type gin in Cangzhou, Hebei manager Zhao introduced, 20-22, the plant will be seed cotton prices down 0.05-0.1 yuan / kg, at 3.65-3.85 yuan / kg (38-39%, moisture rate of 10%). After the downward adjustment, cotton farmers delivery and sale enthusiasm is obviously weakened, the daily purchase volume in 300-400 kg, the recent haze fog heavier, "grain rice not received" condition frequently. Not only Hebei, Shandong Texas, Binzhou and other places seed cotton acquisition also performed cold. According to the person in charge of a gin in Shandong, "In fact, we are waiting and seeing, lest cotton prices fall sharply, the enterprise is not worth the loss."
Spot prices fell slightly, and small bales of cotton fell more. As of the 22nd, Hebei Cangzhou, Hengshui, Shandong Texas, Binzhou and other places real estate cotton prices price center of gravity fell 100-200 yuan / ton compared with the previous week. Small bales of cotton prices fell by a large margin. December 22, according to a small 200-type factory in Hebei, the person in charge of the introduction, "the recent small bales of cotton no one asked for, the current enterprise still has nearly 170 tons of small bales of cotton inventory backlog, the price fell by a large margin."
According to analysis, the small bale of cotton prices fell, one is the downstream manufacturers closed down more, downstream demand weakened; second is the influx of Xinjiang machine picked cotton into the mainland, occupying part of the market share; three is the recent sharp fluctuations in Zheng cotton, small ginners can not withstand the pressure have cut prices.
Cotton yarn price boost is difficult, before the rebound expectation is not much
Since late November, by the old cotton, new cotton rail leading to cotton textile raw materials rose sharply, crude oil and commodities rose triggered by polyester staple fiber to follow the wind up and cotton yarn transportation costs rose, cotton yarn offer passive up 500-800 yuan / ton (a few large brands of high count yarn reported up 1000 yuan / ton). Downstream weaving, fabric, workwear links and foreign trade companies layer on the price increase but "do not buy".
At present, Henan, Shandong, Hebei and Jiangsu and Zhejiang Xinjiang "double 28" hand-picked cotton warehouse pickup price of about 16,000-16,200 yuan / ton; "double 29 / double 30" hand-picked cotton offer about 16,300-16,500 yuan / ton, compared with December In the first half of December, 200-300 yuan / ton; and 1.4D * 38mm polyester staple fiber offer 8450-8500 yuan / ton, compared with September-October rose by more than 500 yuan / ton. Therefore, fabric companies have said that the last half month or so to spin 40S Cotton yarn below the basic no profit or even a loss, cotton textile mills finished goods inventory showed a slow and rising trend. So what causes yarn prices do not go up?
First, the dyeing costs rose sharply will be weaving mills, workwear factories and trading companies to swallow the profits, the larger the single received in advance, the longer the delivery period the greater the loss, the cloth factory can only transfer the risk to the upstream yarn factory. It is understood that, because the relevant state departments to increase the pollution control, sewage monitoring, audit efforts, substandard printing and dyeing enterprises are shut down, transformation, backward production capacity is directly eliminated, the impact of Zhejiang, Jiangsu, Fujian, Guangdong, Hebei, Shandong and other places dyeing and finishing fees overall rose 0.50-0.60 yuan / m, and the printing and dyeing plant row single period generally extended to mid-February later, to catch up with the order needs additional price increases. Cloth factory, workwear factory orders from profit to loss quickly, in order not to lose money or reduce losses can only be "extricated" by "squeezing down".
Second, the port outside the yarn "waiting for the day", very is India and Pakistan, Indonesia, Vietnam yarn, etc. at any time into the Chinese market. According to the survey, as of late December before, China's main port bonded cotton yarn about 92,000-95,000 tons (including a small number of cloth mills or intermediaries to purchase but not out of the goods), mainly India, Vietnam, Pakistan yarn; and the recent arrival of India C21S, C32S yarn contracted shipping prices generally in 2.45-2.50 U.S. dollars / kg, 2.58-2.62 U.S. dollars / kg ( CNF price), which translates into 700-1000 yuan/ton lower cost than domestic yarn offer after customs clearance; and since the domestic cotton price in India and Pakistan is more than 5000 yuan/ton lower than ours, the profit margin and competitiveness ability of yarn mills are stronger. Cotton yarn traders in Qingdao, Guangzhou, Zhangjiagang and other places reflect that the inquiry and shipment of imported cotton yarn is faster since November, and C20S-C32S yarn and C32S/2, JC32/2 and other high matching or jet and rapier yarn are better sold; once the domestic yarn price rises again and the difference between inside and outside reaches more than 1,000 yuan/ton, then the market of C32S and the following spinning yarn will be surrendered to imported yarn.
Third, near the end of the year, fabrics, workwear enterprises to inventory-oriented, working capital and loan repayment pressure. As a rule, more than a month before the Spring Festival, cotton, cotton textile weaving, workwear enterprises into the loan repayment (banks generally in line with the "first to pay back after the loan" principle), settlement of material costs and workers' wages and bonuses rhythm, recovery of payments and throw goods discount is the most important, so cotton yarn price increase is equal to " Self-seeking death". Recently, Shandong, Hebei and other places some small and medium-sized spinning factory, weaving factory leading price cuts to sell, most of the domestic enterprises will follow the wind, funds even taut is the fabric factory before the holiday "common problem";.
Year-end unknown factors are too many, spinning enterprises into confusion
Recently, understand the Yellow River basin, the Yangtze River basin part of the cotton textile weaving enterprises, we show a helpless and heavy pressure on the shoulders of the mood, especially near the end of the year, the end of the year effect appears, the enterprise is at a loss, do not know where to go.
On December 22, a 100,000-spindle spinning enterprise in Shijiazhuang, Hebei, said that since the beginning of this month, their factory reduced 20,000 spindles, as of December 19, the government asked them to reduce another 20,000 spindles, capacity down 40% in response to the current pollution red alert level one response. As a result of recent heavy haze pollution in most areas of Hebei, the government struck hard, large factories to limit production 20-40%, small factories scattered, chaotic, poor unconditional shutdown, bringing great pressure on business finances and orders. 22 December Baoding, a cotton textile factory said that there is still a larger amount of orders in hand, the enterprise shutdown and can not be completed on time.
Second, the end of the funding problem highlighted, the enterprise stretched to the limit. Recent funding problems are mainly in several areas.
1, the payment is difficult to return. The former enterprise sales of cotton yarn, the recent enterprises continue to collect money owed to downstream manufacturers, but the answer is mostly "and so on". There are even the color cotton manufacturers directly said "no money", want to return to the payment can only take the color cotton or towels, woven products against the account, some manufacturers were forced to agree to get back some of the credit, but the loss is great.
2, workers demand to pay off wages. It is understood that the second half of this year, many fabric factories credit workers' wages, some companies owe wages for 2-3 months can not be settled. A factory in Binzhou, Shandong Province, said that the workers are still owed one and a half months of wages, they borrowed everywhere, the past two days to come together, but I do not know where to borrow money next month.
3, raw materials can not afford to buy. As this year, the upstream manufacturers, cotton merchants are required to spinning enterprises cash settlement, before agreeing to lift the goods, which is difficult for many spinning enterprises. Due to the shortage of funds, enterprises under the straits of raw materials, have to short stop part of the production line to maintain.
Overall, the year before the cotton textile market is a bit "chaotic". Upstream cotton market volatility, the downstream cotton yarn market orders downturn, cost inversion, and near the end of the year, the capital problem will also be a big mountain over the head of enterprises, it is really difficult to do a lot. In this market, many small spinning enterprises have begun to shut down production, slightly larger spinning enterprises also selectively shut down some production lines, after all, soon to be the New Year, we all want to go home in peace and stability to spend a good year.
We believe that this wave of the market on the one hand due to the increased pressure on environmental protection, on the other hand, the futures market, the year before the flow of funds will be more frequent, simple on the spot raw material market caused a short period of chaos, you fabric colleagues should also be prudent and cautious.
Contact: Jeanne yang（MISS）
E-mail: [email protected]
Add: Room A2216/A2217,Double-Star Building,No 567 New South Middle Road, KunShan City JiangSu Province ,China.